NEW YEAR, NEW IDEAS: HOW ARE YOU INNOVATING YOUR BUSINESS TO REMAIN COMPETITIVE? - A QUARTERLY PUBLICATION OUTLINING RELEVANT BUSINESS ISSUES FOR YOU
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
W I N T E R A QUARTERLY PUBLICATION OUTLINING RELEVANT BUSINESS ISSUES FOR YOU NEW YEAR, NEW IDEAS: HOW ARE YOU INNOVATING YOUR BUSINESS TO REMAIN COMPETITIVE?
“I am a strong believer that what makes us stronger
Welcome
as a team and firm is embracing a diverse and
inclusive workplace that brings different experiences
and views into the Boardroom and challenges
traditional thinking.”
IN THE WINTER 21 ISSUE
WELCOME 2 The new financial year is finally upon us, enabling us to reflect on the
Message From The MD good, the bad.. and the ugly to best prepare ourselves for the future.
With the recent celebrations around Pride month and NAIDOC Week, we saw a
BUSINESS ADVISORY 3
time to reflect on our role in the community in raising awareness about diversity
Planning For A Successful 2022
and inclusion and making a difference through action.
SUPERANNUATION 4 I am a strong believer that what makes us stronger as a team and firm is
Four Critical Superannuation embracing a diverse and inclusive workplace that brings different experiences
Changes and views into the Boardroom and challenges traditional thinking. Our Diversity,
Equity and Inclusion Council are striving to actively promote diversity and inclusion
initiatives through a planned framework, targeted at embracing our team and what
PKF WEALTH 5
makes them unique.
Four Investing Lessons From 2020
In providing more than just lip service to these causes, we were pleased to
CORPORATE FINANCE 6 recently support the Australian Indigenous Education Foundation to help
PKF Advises Camplify Indigenous children access quality education throughout Australia.
On ASX IPO Listing Our engagement and push for a more diverse business community in Australia,
led to us thinking about innovation. Innovation is borne from thinking differently
TAXATION 8 and it is innovative thought that we focus on in this issue of Pulse.
Fact or Fiction – Are Tax Incentives
Look out for insights into how strategies can mitigate potential risks, a feature
Fuelling The Ute Market?
on Camplify and their recent ASX IPO raising over $11.5 million, a different take on
the new ‘hype’ that surrounds the new Ram Utes or as you might call them ‘Super
AUDIT & ASSURANCE 9 Utes’, in which buyers are utilising tax incentives and stimulus and some insight
The Value Of Story-Telling into the value of storytelling in today’s society.
We also take a look at Baraja, a PKF client whose
PKF PARTNERSHIPS 10
innovation in their world leading LIDAR technology will be
Mark Hughes Foundation
utilised in the driverless cars of the future. This technology,
Beanie Week
once perfected, will be utilised by some big brand names.
Very exciting stuff.
BUSINESS RECOVERY & 11
INSOLVENCY With the Paralympics approaching, we’re proud to get
The Personal Liability Virus. behind PKF Ambassador Lauren Parker, a truly inspirational
Beware, Get Tested And Stay Safe person who will be in Tokyo going for Gold. We’ll be Lauren Parker
cheering Lauren on from the sidelines and hope that you
are too.
IT 12
What Is Ransomware? Finally, congratulations to Cameron Williams of our Tax
Team who was recognised as our Employee of the Quarter.
Cameron is a fine young man, going places and well
CLIENT PROFILE 14
regarded among the team.
Baraja
Happy New Financial Year from myself and the team at
TAKE FIVE WITH.. 16 PKF – we hope that it is a prosperous one for all! Cameron Williams
Chris Weatherall From Sydney’s
Corporate Finance Team.
Kind regards.
TAX DIARY 16
Steve Meyn
Managing Director
“Taking the time to sit down and whiteboard the above will show
up not only issues you may have forgotten about, but it will also
highlight the positives that came out of COVID.”
Jackie Marriott Principal BUSINESS ADVISORY
Planning For A Successful 2022
With the unprecedented financial One of the biggest struggles most This exercise relates to just one of the
year that was 2021, many owners industries faced through COVID many stressers owners face, but it helps
was cashflow. With the removal identify that you can get in front of a
are questioning how they can of government assistance, many problem before it becomes an issue,
position their business to not businesses may now face a more drastic in a few easy steps.
only survive but thrive in an strain on their cashflow than ever before.
Taking the time to sit down and
ever-changing environment. whiteboard the above will show up not
Things you can implement now to only issues you may have forgotten about,
Whilst some businesses have faced avoid issues in the future include: but it will also highlight the positives that
an extremely challenging 12 months
• Set a realistic budget/cashflow came out of COVID. This might include a
of trading and intense struggle, at PKF
forecast for the 2022 financial year new market you have not targeted before,
we have been fortunate enough to see
an employee that really stepped up and
entities thrive in their new environments • Find out what your break-even showed their worth to the business, or
and quickly pivot their products and point is and have all members even that your business faired much better
services to a new market. How have of your sales division understand than your competitors. You can then build
they done this? Through planning. these base targets on these wins i.e. moving your marketing
So with the new financial year upon us, • If the forecast reveals that you resources to target these new customers
now’s the time to catch your breath, will go into negative cash at even further or giving your gold employee
reflect on how your business has fared some point – speak with your that promotion and recognition.
and determine what strategies you banker now to set-up the
can implement to set yourself up for necessary funding. Even if you At PKF, we specialise in
a successful and prosperous 2022. don’t end up using these lines completing strategic planning
It’s easy to fall into the trap of just of credit, you are assured it’s sessions that focus on the
‘keep on keeping on’ but taking the there which might reflection exercise above. If
time to focus on this important exercise well avoid some sleepless nights! this is something you would be
can highlight weaknesses in your interested in discussing with us,
business and reset your goals for please get in touch.
the next 12 months and beyond.
Questions to ask yourself include:
• What did you implement in your
business that caused a positive
impact? Can you take this forward
into future trading?
• What struggles did your business
face?
• What could you have done to
pre-empt this?
• Did your competitors do something
different to you and what was the
outcome?
• Which of your people shone through
the tough times and what can you do
to reward and retain them?
• What can you implement now and
pkf.com.au I
who is responsible for this action?
• Who do you regularly get feedback
from and how is this obtained?
03
“The introduction of the transfer balance cap and subsequent increase has
added significant complexity when it comes to an individual’s ability to make NCCs.”
SUPERANNUATION Partner Daniel Clements
Four Critical Superannuation
Changes
A new financial year brings with it The introduction of the transfer balance • $1.6 million if, at any time between
cap (TBC) and subsequent increase in 1 July 2017 and 30 June 2021,
changes in superannuation. These
TBC has added significant complexity the balance of that account was
changes elude to the evergrowing when it comes to an individual’s ability $1.6 million or more.
complexity of super contributions to make NCCs. It’s more crucial than
• etween $1.6 and $1.7 million in
B
and the changes to concessional ever to check with your Super Fund
all other cases, based on the highest
administrator before making any NCCs
and non-concessional contribution ever balance of your transfer balance
to ensure you don’t inadvertently exceed
caps heading into the new year. account.
your cap and face excess contribution
penalties. You can view your transfer balance
1 Increase
in concessional information using the ATO online
contribution caps 3 Increase in Transfer services (accessed via myGov).
From 1 July 2017 to 30 June 2021, the Balance Cap
concessional contribution cap for each 4 Increase in Super
The TBC is a limit on how much
year has been $25,000. From 1 July Guarantee Rate
superannuation can be transferred from
2021, the concessional contributions your accumulation superannuation As an employee, if you meet the
cap changed to $27,500. The increase account to a tax-free ‘retirement phase’ Australian Government’s eligibility
is a result of indexation in line with account. criteria, you are entitled to receive regular
average weekly ordinary time earnings superannuation contributions, made on
(AWOTE). The general TBC is currently $1.6 million.
your behalf by your employer.
From 1 July 2021, it has been indexed
Your cap may be higher if you did not to $1.7 million. Now that the general The minimum percentage employers are
use the full amount of your cap in earlier TBC is indexed to $1.7 million, there required to pay is set to increase over
years. This is called the carry-forward of won’t be a single cap that applies to time, with the increase to 10% occurring
unused concessional contributions. You all individuals. Every individual will have on 1 July 2021. Below are the present
can check your available concessional their own personal TBC of between $1.6 SG rates, as well as the currently
contributions cap using the ATO online and $1.7 million, depending on their legislated future changes to the rate
services (accessed via myGov). circumstances. from the Australian Government.
If you start a retirement phase income
2 Increase
in non-concessional If you have some questions
stream for the first time on or after 1
contribution caps about what this means for you,
July 2021, you will have a personal TBC
From 1 July 2017 to 30 June 2021, the of $1.7 million. If you had a transfer get in touch with your local PKF,
non-concessional contribution (NCC) balance account before 1 July 2021, SMSF team.
cap for each year has been $100,000 your personal TBC will be:
or $300,000 over 3 years when using
bring-forward arrangements. From 1 July
Financial Year Super Guarantee Rate
2021, the NCC cap was increased to
$110,000 or $330,000 over three years 1 July 2014 – 30 June 2021 9.5%
when using bring-forward arrangements.
1 July 2021 – 30 June 2022 10%
An individual’s NCC cap may vary for the
following reasons: 1 July 2022 – 30 June 2023 10.5%
• If a bring-forward arrangement is
1 July 2023 – 30 June 2024 11%
currently in place.
pkf.com.au I
• If your total super balance is greater 1 July 2024 – 30 June 2025 11.5%
than, or equal to, the general transfer
1 July 2025 – 30 June 2026 and onwards 12%
balance cap ($1.6 million from 2017–
21; $1.7 million from 2021–22).
4
“Arguably the most important part of investing is the art of acting
afree of emotions when making decisions. This is not easy!”
Andrew Russell Financial Adviser PKF WEALTH
Four Investing Lessons From 2020
2020 was a turbulent year to say was pre-COVID and the US market is at
record highs, up roughly 25% of what it
the least. By February, COVID-19
was in February 2020. So, what can we
cases were getting closer and learn from 2020?
closer to home and by March
essentially the whole world was in 1 Do not panic!
lock-down. “Unprecedented” was Arguably the most important part of
the buzz word of the time and the investing is the art of acting free of
share market did what it so often emotions when making decisions.
This is not easy! March of last year
does when there are times
was a time like most of us have never
of extreme uncertainty… it seen. The toilet paper bandits are a
crashed. In the US, the S&P perfect example of human ability to
500 Index dropped 34% in just act irrationally during times of distress.
The same goes for investing, if you
33 days between February and have a long-term time horizon for your
March. At home (Australia) the investments, selling during a crashing
S&P/ASX200 Index fell by a market will only realise your losses from
paper to cash. Don’t sell if you don’t
whopping 36.5%. For many, this
have to.
was another layer of stress to
add to the daily hardship that was 2 Diversify
COVID-19.
As the saying goes, don’t put all your
Unfortunately, for the investors who eggs in one basket. A well-diversified
sold their positions during 2020 to portfolio is what is achieved when
‘protect’ their money, ironically, this did assets are allocated effectively across
the opposite. History tends to repeat differing sectors to reduce sector risk
itself, and just like every other stock and stock specific risk. To use an
market crash, the market has now extreme example: imagine if you went in
fully recovered. The Australian market to COVID with a portfolio full of tourism months. Entering buy positions during
currently sits slightly above where in shares, it would not be pretty. Compare the panic of COVID or any crash is not
this with a professionally diversified for the light-hearted and may not be for
portfolio of multiple shares across everyone, so:
varying sectors. In this case, if a share or
even a whole sector tanks your losses 4 Talk to your Financial Adviser
will be mitigated across the rest of the
portfolio. Experienced financial advisers
have just what you need,
3 What
would you do in experience. From the dot-com
hindsight? BUY bubble, to the downturn of 2003,
to the GFC, an experienced
Hindsight is good, but foresight is financial adviser will have
better. Remember this for the future: worked during at least a few
every stock market crash in history market crashes and will know
has recovered! The COVID-19 crash what to do. They will be there to
presented a massive buying opportunity cancel out the noise of fear and
to score premium investments at a doubt that inevitably comes with
pkf.com.au I
discount. From mid-March 2020 to uncertainty and rather, provide
now (June 2021) the Australian market rational tailored advice to deliver
is up 45% and the US market up 84%. clarity on your financial situation.
That is a staggering return for only 15
5
CORPORATE FINANCE
PKF Advises Camplify On ASX
IPO Listing
PKF has advised long-term client The Corporate Finance Director that
led the deal, Andrew Jones, described
Camplify on their Initial Public
Camplify as the perfect example of a
“We felt the business was
Offering (IPO) raising $11.5 million. client that benefits from the mid-tier at a maturity level in terms
Demand for the campervan and motor accounting experience. “Camplify was
home sharing community was high born from entrepreneurial spirit and has of its operation, and from
with reports stating that the IPO was grown to become Australia’s largest
over four times oversubscribed with and most trusted van sharing platform. a corporate perspective,
customers looking to buy shares. PKF and Camplify were the perfect fit
from the start of our relationship when to be able to take on that
PKF’s relationship with Camplify has Camplify were reasonably new to the
been built on strong foundations. Audit market. The nurturing of the relationship
next challenge. We’ve got
& Assurance Partner, Martin Matthews through collaboration and utilisation of
began to advise the innovative business an unbelievable opportunity
a PKF brains trust means we are
in 2018. The relationship grew to
encompass a full suite of offerings
proud, as a full-service accounting now to really take this thing
and business advisory firm to stand
including audit services and corporate alongside them whilst they celebrate to the next level.”
finance advisory that led to the listing this remarkable success”.
on the ASX.
pkf.com.au I
6
Camplify founder, Justin Hales said the current boom in the van travel market,
company is excited by the listing and they have the opportunity to test out
he thanked new shareholders for their the camping world, by being connected
support. with a unique holiday experience they
will never forget. The site operates on a
“We felt the business was at a maturity
global level, giving caravan, motorhome
level in terms of its operation, and from
and van owners the opportunity to
a corporate perspective, to be able to
share their much-loved holiday treasures
take on that next challenge. We’ve got
across Australia, New Zealand, UK and
an unbelievable opportunity now to really
Spain.
take this thing to the next level.”.
The PKF team acting on the Camplify About Camplify:
engagement includes Martin Matthews,
Andrew Jones and Scott Henderson. Camplify is on a mission to become the
world’s largest and most trusted caravan
Originally founded here in Newcastle, & motorhome sharing community,
Camplify now has a community of over making ‘van life’ accessible to all.
50,000 holiday-makers and with the
pkf.com.au I
7
“The biggest factor is that Utes are a popular vehicle. The instant asset write
off/temporary full expensing stimulus has helped but other Government
spending, consumer liquidity and economic optimism have and will
continue to play a substantial role.”
TAXATION Andrew Porvaznik Partner
Fact or Fiction – Are Tax Incentives
Fuelling The Ute Market?
It is a scene you see every Friday
night at the local pub – a group of
tradies discussing the tax savings
from buying their latest Ute.
Or perhaps the discussion is
around the latest aggressive
looking Black Ram DT Luxury
1500 which fits all the family,
bikes, luggage, and dog(s) for the
six-month camping holiday.
So, are tax incentives such as the
“temporary full expensing” (no threshold
from 6 October 2020) and prior to that
the “instant asset write-off” ($30,000 and Master vans. The flow on effect of a $30,000 write off helped our LDV Ute
threshold from 2 April 2019; the Ute and van sales is clear to see in the market.” Roger said.
$150,000 from 12 March 2020) fuelling aftermarket accessories market with
Roger said “the feedback from the
the Ute market growth? We sought record sales and profits for the likes of
Dealer network was that any tax-based
input from the senior executives at Ateco the ARB group.
incentive is a difficult one to explain
Automotive Group (who import and
In my view, the growth in Ute and to customers.”…“No Dealer wants to
distribute Ram Trucks, LDV and Renault)
aftermarket accessory market is creating be a tax adviser, it’s a simple as that.
to bring perspective to the discussion
thousands of jobs. Local manufacturers Even our lawyers are paranoid about
being played out in the media.
of products like tow bars, bull bars, how we portray any tax benefit in our
Dinesh Chinnappa (General Manager exhausts and canopies have never been advertising”.
of LDV) considers that there are many as busy. Consumers are not prepared
Both Dinesh and Jeff are seeing an
reasons behind the growth in the “Ute” to wait for imported product. In a very
emerging trend of home renovators
segment. These include that the Ute tangible way, the range of Government
trading the sedan for a Ute. Shows
is now a mainstream vehicle and an incentives and spending is working to
like “The Block” have a big impact for
alternative to the large SUV – it is no create jobs.
the DIY builder. There is nothing better
longer just a work car. Customers are
Jeff Barber (National Manager, Ram than having a Ute to be involved in the
seeing affordable Utes (such as the
Trucks Australia) pointed out that the building project and perhaps, parking
LDV T60) with the same luxury features
pickup cab chassis (4x4) segment has in loading zones. “You would look out
as top of the range SUVs, particularly
been growing steadily since 2016 when of place at Bunnings in a sedan these
with regards to performance, safety,
it represented 12% of all vehicles sold. days” says Dinesh.
technology, and comfort.
In 2020, that number has increased to
The impact of COVID-19 is also 17%. Growth, yes, but not what you So, there are many factors
acknowledged by Ateco. Utes are key to say is astronomical tax incentive fuelled fuelling the growth in the
the “grey nomad” market given towing, growth. In a very short time, Ram Trucks Ute market. The biggest
storage, and off-road capabilities. has become the iconic “head turning” factor is that Utes are a
Easy access to cheap finance (banks large Ute in the Australian market. popular vehicle. The instant
offering attractive small business finance asset write-off /temporary
“If anything, Federal and State
packages) and high levels of consumer full expensing stimulus has
Government spending on infrastructure
pkf.com.au I
confidence and spending are a positive helped but other Government
and housing-based incentives are having
impact on the Ute (and automotive in spending, consumer liquidity
a major impact on the Ute market.”
general) market. and economic optimism have
suggests Roger Zagorski (MD of the
The explosion in online shopping and Ateco Group). “Ateco was seeing an and will continue to play a
the need for couriers is also fuelling upsurge in demand well before the 2 substantial role.
the Ute and small van market. Renault April 2019, instant asset write-off was
is seeing strong demand for the Trafic announced – but the initial increase to
8
“As a risk and assurance professional, the best forums, courses and lectures
have involved review and analysis of real scenarios, where risks have
eventuated, life experience has been gained, and ultimately lessons learnt.”
AUDIT & ASSURANCE Amy Daley Manager
The Value Of Story-Telling
One of the most impactful things
I’ve read to date, is how we use
stories to connect and make
sense of the world: “The stories
you experience shape your
perception of the world, and your
perception, ultimately shapes the
stories you tell.”
As a child, stories encourage curiosity
and imagination. They also help us to
learn the intricacies of communication,
social norms, along with the potential
impacts of our actions and behaviour.
Throughout history, quality stories have
been able to transcend generations.
Fairy tales, nursery rhymes, and poems
have helped us to create and share • Being absolutely glued to my seat • What language is being used?
memories, develop empathy, and most at last year’s Risk Management
• What’s not being said?
importantly how to overcome adversity, Institute of Australasia’s conference as
and demonstrate growth and resilience. anaesthetist, and 2019 Australian of • What’s missing?
the Year recipient, Dr Richard Harris
Being captivated by a story has been • What were the decisions made along
shared his perspective of the behind-
described as ‘illuminating the city of the way?
the-scenes emotions and decision
our mind.’ - With our brain functioning making of the Thai Cave Rescues; and • What are the learnings here? and
on electrical pulses, when we hear an
engaging story, it quite literally ‘lights up’. • Having the pleasure of meeting, and • What are the practical next steps that
working with non-executive director can be applied to help us achieve
Often, we might not remember the of PKF Sydney and Newcastle, Kylee reduced risk exposure, and improved
detail, but we do remember how the Dare. Kylee generously shares her performance, and resilience?
story made us feel. personal and professional story and
In addition, we must also ensure
As a risk and assurance professional, experience, and is a passionate
we actively cultivate, and invest
the best forums, courses and lectures advocate of Diversity Equity and
in both our tribe and professional
have involved review and analysis of real Inclusion. Any time spent with
development. Engaging with a diverse
scenarios, where risks have eventuated, Kylee leaves you feeling supported,
range of individuals, and reading
life experience has been gained, and motivated, and privileged to have such
widely, encourages us to stay curious,
ultimately lessons learnt. a powerful, generous and inspiring
empathetic and focused.
leader in your tribe.
Some recent memorable examples for
me include: As competent professionals, we must With our ever constant
continue to listen closely to the stories competing priorities, I’d highly
• Ex-Wallaby captain Dean Mumm we hear. This includes slowing down,
sharing his personal challenges, recommend taking a few
removing distractions, and taking time to minutes out of each day to
inclusive of testing his limits with a consider:
venture to the North Pole to raise slow down, and let yourself get
funds for his charity Borne HMRI • What is really going on? absorbed in either telling or
as part of our Greater Bank Risk really listening to a story.
• Why am I being told this information?
Professionals program which aimed
pkf.com.au I
to get staff across the organisation • Does this get us closer or further away
thinking differently about risk; from our ultimate goal or destination?
9
MARK HUGHES FOUNDATION
Mark Hughes Foundation
Beanie Week
Purchasing a MHF beanie each
year has become a tradition
that most Novocastrians (and
Australian’s) have jumped on
board with to support the amazing
cause that is the Mark Hughes
Foundation, and PKF Sydney &
Newcastle is now different.
Every year since 2017, our firm has
put its hand in its pockets and bought
beanies for all team members, This year,
our team put their hands up to volunteer
their time in packing beanie orders.
We’re astounded and proud of the
impact that the foundation is having
on a national level.
By purchasing a beanie this
winter, you can help raise funds
for brain cancer research and
the amazing Brain Cancer Care
team who provide support to
brain cancer patients across the
Hunter.
pkf.com.au I
10“If a director has personally guaranteed business debts,
delaying a decision to appoint an external administrator may
have increased their personal exposure.”
BUSINESS RECOVERY & INSOLVENCY Senray Loy Senior Manager
The Personal Liability Virus. Beware,
Get Tested And Stay Safe.
personal assets and in which case, if the
business has not been able to service
the loan and continues to accrue interest
and charges, it would increase the
amount the director would have to repay
personally to the financier.
You should seek advice if either of these
scenarios is an area of concern.
Director penalty notices
The Australian Taxation Office has not
been actively pursuing outstanding
tax debts since the pandemic started.
However, it now appears that the tide
is changing and the ATO is starting
At the start of the COVID-19 impact it may have on their personal to ramp up its collection activities. It
financial circumstances, especially under
pandemic, the State and Federal is essential that directors make it a
the following circumstances: priority to lodge Company returns on
Governments introduced a number
time or risk being personally liable for
of excellent measures to assist Personal guarantees tax debts such as PAYG withholding,
businesses from collapsing. These Superannuation Guarantee Charges
If a director has personally guaranteed
included monetary assistance such business debts, delaying a decision
and GST under a “lockdown” Director
Penalty Notice. If this is of concern, it is
as JobKeeper, cashflow boost, to appoint an external administrator
essential that you seek urgent advice.
the introduction of a moratorium may increase their personal exposure.
Even if the company was able to
on director insolvent trading, Insolvent trading
negotiate a debt deferral during the
higher thresholds for responding pandemic, the debt remains and may The moratorium on insolvent trading
to demands from creditors and have continued to increase due to expired on 31 December 2020. If
enacting the National Code of the accrual of interest, fees and other directors are continuing to trade, they
charges. If this is an issue for you, it have to consider whether the company
Conduct for commercial tenancies, would be prudent to review all personal is insolvent or is likely to be insolvent
to name a few. guarantees you have executed and seek prior to incurring any further liabilities
advice on the next course of action. as a claim may be brought against
These measures provided directors
with breathing room that allowed them them should the company be wound
to weather the storm without the need Security against personal property up. Directors need to be mindful of
to rush and place their business into monitoring the business activities and its
As with personal guarantees, a director
external administration during the height performance to avoid this situation.
may have had to mortgage their house
of the pandemic.
to obtain a bank loan, overdraft or bank
These measures have since expired or guarantee for the bond on a commercial We are here to help
been wound back. For those business lease. In circumstances where a director
that have not adapted to the current delays the appointment of an external If you are a director of a
environment and have been reliant administrator and the business has not company and have concerns
been able to meet the ongoing rental
pkf.com.au I
on these measures, the directors of regarding the ongoing viability
these companies must consider if payments, the landlord can call upon the of your business, please contact
it is necessary to appoint external bond to cover the unpaid rent. the Business Recovery and
administrators if the business is insolvent Insolvency Team at PKF. We
Another example is where a director
or is likely to be insolvent. Directors can provide expert help with the
secures a business loan from a financier
should not only consider the financial available options to stay safe
to fund the business. Again, the loan
position of the business, but also the from the debt virus from the
may have been secured against
pandemic.
11“Ransomware attacks can be very hard to detect and stop outright, if the attacker
has enough time and resources to focus on your specific organisation for an
extended period there is a possibility they will gain access.”
IT Manager Joshua Gambrill
What Is Ransomware?
Labour has recently introduced 2 Phishing
scams — In general What can I do to prevent
a bill to parliament which would the aim of a phishing scam is Ransomware?
to send a legitimate looking
require all organisations over Especially with the remote access
message (email, sms, voicemail,
$10m turnover to notify the attack above, Ransomware attacks
zoom etc.) which encourages a
can be very hard to detect and stop
Australian Cyber Security Centre user to provide usernames and/
outright. If the attacker has enough
before they pay a ransom to or passwords. These usernames
time and resources to focus on your
and passwords can be used for a
recover access to their files, so variety of purposes but some of the
specific organisation, for an extended
what is Ransomware? period there is a possibility they will
most common are Ransomware,
gain access. For most small and
theft of cash and theft of personal
Ransomware is software which prevents medium organisations, having a few
information. In their use of
an organisation from accessing some or basic items in place can make your
Ransomware the usernames and
all of their data until an amount is paid organisation a lot less attractive target
passwords can be used to connect
to the people who are holding the data for attackers. Things like: multi-factor
to an organisations network in
hostage. There are a number of different authentication, building good password
the same way a user would when
methods attackers can use to infect policies (including password blacklists
working from home.
systems, but the intention is always the to prevent people using Password01),
same — block access to files and make 3 Remote
access — locking down remote access to only
an organisation pay to restore access The COVID-19 pandemic those who need it and keeping software
rather than lose valuable information. brought many opportunities and systems up to date, are all simple
In more recent cases, attackers have to work differently and this was steps that make access for attackers
threatened to release confidential no different for Ransomware. much more difficult. In addition,
information or intellectual property to With the rise in working from ensuring backups are not accessible on
competitors or the public to prevent home and the sometimes rushed the organisation’s network can provide
the organisation from simply restoring out nature of remote access a recovery path if you are attacked.
backups and not paying. solutions, there has been an
As with any business risk there is a
increase in attackers exploiting
How do you become a victim of a trade-off between the likelihood, the
vulnerabilities or using stolen
Ransomware attack? value of the data your organisation
credentials (see phishing scams
In general there are three main methods stores, the cost of downtime and the
above) to access an organisations
used to hold files hostage — malicious cost of prevention but, the cost of a
network. These attacks can be
software, phishing scams and remote successful Ransomware attack can
some of the most damaging and
access. quickly add up even if you don’t pay the
difficult to recover from as the
ransom.
attacker can take their time looking
1 Malicious software — Malicious
around the network, documenting
software was previously the
the software and systems in How can PKF help?
most common attack method.
place and planning the attack for Prevention: PKF have worked with
Generally this software came in
maximum effectiveness. These
the form of an email or link. The several clients around providing an
attackers will often identify the
software encrypted every file on independent review of the IT design
backup location first and ensure
your computer and/or network and and technology in place and advised
the backups are made unavailable
would include instructions on how on where it can be improved to provide
along with the rest of the
to pay to get the files unlocked. more resilience and visibility over things
environment to make restoring from
While this does still happen most like Ransomware.
backup more difficult than paying
modern anti-virus products are
the ransom. Cure: We have also assisted
generally quite effective at blocking
organisations work with their existing IT
this type of attack so phishing
providers after an incident has occurred
scams and remote access have
to provide assistance with the recovery
become more popular.
pkf.com.au I
and post incident reviews to see where
processes and technology can be
improved to prevent future incidents.
Get in touch with our team today
to see how you can get better
protected.
12“There are a number of different methods attackers can use
to infect systems, but the intention is always the same —
block access to files and make an organisation pay to restore
access rather than lose valuable information.”
pkf.com.au I
13“Moving from a smaller accounting firm, Federico and Cibby realised their
business needed more than a ‘traditional’ accountant that worked on their
quarterly BAS and tax returns.”
CLIENT PROFILE
BARAJA – Driving The Future
In 2016, Federico Collarte and on their quarterly BAS and tax returns. Baraja’s world leading LiDAR technology
Considerations of Big4 accounting didn’t will be utilised in the driverless cars
Cibby Pulikkaseril, founders of
feel like the right fit for an innovative of the future. Their partners include
Baraja came to PKF with a dream start -up. Nicholas’s expertise and his manufacturers and tier 1’s such as
to be the leader in autonomous experience working with innovative tech Veoneer and Hitachi which has led to
vehicle technology. Today, they’ve start-ups assured Baraja that the service major growth for the company. With
they received would be fast, flexible Baraja we’re that bit closer to efficient
secured $40 million to build
and fluid with the ability to pivot when and safe technology for the future of
the next-generation of LIDAR needed. autonomous vehicles.
technology to make that dream
“It’s all about being able to grow with our
a reality. clients. If we can’t solve a problem, we
PKF Business Advisory Director and find someone that can. There is no one
start-up expert, Nicholas Falzon was size fits all approach and we don’t try
first introduced to the team at Baraja to use the same strategy and methods
when the business was awarded a with everyone. We have strong networks
$1million Commercialisation Australia and utilise the capabilities within PKF
Grant and realisation struck that they whenever we need to” said Nicholas.
needed strong advisers surrounding “We’re both working at the cutting edge
them. of our individual industries, constantly
Moving from a smaller accounting learning from each other, researching
firm, Federico and Cibby realised and developing new techniques and
their business needed more than a strategies that we can apply to help
achieve our goals” said Nicholas. Baraja’s world leading LiDAR technology
‘traditional’ accountant that worked
pkf.com.au I
14Tax Leader
Location
Newcastle, NSW
v
What Are We Looking For?
Significant complex tax A thought leader with A flair for business
experience with a proven a talent for explaining development and client
track record in delivery complex tax issues in a way involvement
that anyone can understand
Are you a tax superstar looking to work alongside Newcastle’s most experienced tax leaders? Whether you’re local to
Newcastle, looking to return home or want to make a move (and a great lifestyle change), we’d love to hear from you.
With a great blend of coastal beauty and big-city convenience, Newcastle is the business hub for much of regional
New South Wales.
Working alongside our Senior Tax Partner of 30 years experience, you will have exposure and guidance from
Newcastle’s leading tax and advisory professionals.
The successful applicant will: • B
e able to demonstrate tax • Prior experience at a Big 4
theory through storytelling or mid-tier professional or
• H
ave the ability to inspire others accounting services firms
and lead • H
ave a strong desire to grow preferred but not essential
and develop both as a person
• B
e a talented tax professional and in your career • CA/CPA qualified
able to simply explain complex
tax theory • S
trong collaborative skills,
an enthusiastic work ethic and
• E
njoy networking and excellent communication skills
have a knack for business
development
Achieve More Stay True Be Remarkable
Take your career to the next Stay faithful to your values The opportunity to excel
level working with inspiring and mould the tax division and have an impact in the
leaders who will challenge at a Top 10 Accounting firm businesses of clients and
and motivate you lives of team membersTax Diary
“At PKF we think it is important for our clients to ‘get to know’ our
team, so we took five minutes to chat with Chris to find out some
interesting things about him.”
AUGUST 2021
Take 5 with...
14 Due date for lodgment of the
PAYG withholding payment
summary annual report (for
payments not reported and
Chris Weatherall finalised through Single Touch
Payroll).
21 Due date for lodgment and
Take 5 has shown the team at PKF Q If you could go back in time,
payment of July 2021 monthly
what year would you travel to?
that there are a lot of things that BAS and IAS.
we may not know about someone, 1970 – I’ve been to Glastonbury festival
several times but wish I could experience
even if we work with them. what it was actually like it is early years.
28 Due date for taxpayers in the
building and construction, courier,
600,000 also attended a festival on the
Q What is a little known/interesting
Isle of White headlined by Jimi Hendrix
cleaning, road freight, information
fact about you? technology (IT) and security,
and The Who that year and Concord
investigation or surveillance
I am a saxophonist and have played in made it firsts supersonic flight!
industries who pay contractors
jazz bands for many years
in these industries to lodge a
Q What would you sing at Karaoke
taxable payments annual report.
Q Do you have a career highlight
night?
so far?
Anything Arctic Monkeys. I’ve belted
ompleting my first M&A transaction in
C out “I Bet That You Look Good On The
the old library at Lords Cricket ground Dancefloor” a few times.
dressed in black tie and then celebrating
at an evening dinner straight afterwards!
Q If you could live anywhere, SEPTEMBER 2021
where would it be?
21 Due date for lodgment and
Tokyo – I visited a couple of years ago
payment of August 2021 monthly
and found the people, culture and food
BAS and IAS.
amazing
PKF Sydney & Newcastle Contacts
Andrew Beattie Anthony Sullivan Chris Davis Nicholas Falzon
Business Advisory Hospitality Wealth Creation Innovation, Research and
abeattie@pkf.com.au asullivan@pkf.com.au cdavis@pkf.com.au Development
02 4962 2688 02 8346 6000 02 4928 7000 nfalzon@pkf.com.au
02 8346 6000
Andrew Jones Bob Bell Clayton Hickey
Corporate Finance Business Advisory Audit and Assurance Sarah Scott
ajones@pkf.com.au bbell@pkf.com.au chickey@pkf.com.au Chief Marketing Officer
02 8346 6000 02 8346 6000 02 4962 2688 sscott@pkf.com.au
02 4962 2688
Andrew Porvaznik Brad Tonks Daniel Clements
Tax Business Recovery and Superannuation Wayne Gilbert
aporvaznik@pkf.com.au Insolvency dclements@pkf.com.au Integrity and Risk
02 8346 6000 btonks@pkf.com.au 02 4962 2688 wgilbert@pkf.com.au
02 8346 6000 02 8346 6000
FIND US ON
PKF Sydney, Newcastle and Central Coast are member firms of the PKF International Limited family of
legally individually owned firms and do not accept responsibility or liability for the actions or inactions of
any individual member or correspondent firms.You can also read
